Filing Status: Single, Married Filing Joint (MFJ) and Married Filing Seperate (MFS)

Question 1

What is the primary thing that filing status depends on?

Answer 1

The taxpayers marital status on the last day of the year.

Question 2

When are spouses considered married?

Answer 2

1. Legally married living together
2. legally married and living apart
3. common law married
4. Separated under a divorce decree that is NOT final
5. one spouse died during the tax year and the surviving spouse did not remarry

Question 3

When are same sex partners considered married?

Answer 3

When they are married on the last day of the tax year in a state that allows same sex marriages

Question 4

When is someone considered unmarried for the tax year?

Answer 4

1. unmarried
2. divorced or separated under legal decree by the last day of the tax year.
3. (HH) married but you did not live with your spouse for any time during the last 6 months AND you file separate returns

Question 5

When is someone considered Single?

Answer 5

1. legally divorced or legally separated on last day of tax year
2. TP does not qualify for any other status

Question 6

Can a couple file MFJ if one spouse is a nonresident alien (NRA)?

Answer 6

No, unless the couple agrees to include all worldwide income.

Question 7

Can a MFS return be amended to MFJ?

Answer 7

Yes. Tax liability is not due at time amendment is filed.

Question 8

Can a MFJ return be amend to MFS?

Answer 8

No

Question 9

What are the Married Filing Joint Requirements (MFJ)? (4)

Answer 9

1. each person needs a ssn or itin
2. married and agree to file MFJ
3. TPs use the same accounting period (accounting method can vary)
4. Both tax payers sign the return

Question 10

What filing status can a married taxpayer use?

Answer 10

1. MFJ
2. MFS
3. HH - under specific conditions

Question 11

What needs to be done if a marriage is annulled and the couple filed MFJ on previous year returns?

Answer 11

Amended returns with different filing statuses (HH or single) must be filed for all open returns not under the statute of limitations

Question 12

What is an Injured Spouse?

Answer 12

When a couple files MFJ and only ONE spouse owes a past-due amount THEN the other tax payer can be considered an injured spouse and get their share of the refund

Question 13

What are the requirements for a TP to be considered an Injured Spouse ? (4)

Answer 13

1. MFJ
2. Must report income (wages, interest, etc)
3. Made tax payments (withholdings/estimted payments) OR can claim a refundable credit
4. Not required to pay a past due amount

Question 14

What is Innocent Spouse relief?

Answer 14

TP is relieved of all/part of the joint liability because their spouse did something shady (intentionally omitted income or claimed false credits)

Question 15

What conditions do you have to meet to receive Innocent Spouse relief?

Answer 15

1. MFJ
2. There must be an understatement of tax due because of an erroneous item
3. You can show that when you signed the return you did not know and had no reason to know what happened
4. considering everything it would be unfair to hold you liable

Question 16

Why would a couple choose to file MFS? (2)

Answer 16

1. The could not agree to file MFJ

2. Better overall tax liability if they file MFS

Question 17

How do TPs report their income when filing MFS?

Answer 17

1. Normally: each reports their own income and deductions related to expenses they paid
2. Community property states: each has their own laws

Question 18

How does MFS affect the standard deduction?

Answer 18

1. The standard deduction is 1/2 of the MFJ deduction

2. If one spouse itemizes then the other spouse must itemize

Question 19

How does MFS affect child and dependent care credit?

Answer 19

1. No credit

2. only allowed half of the exclusion of employer dependent care plan ($2500)

Question 20

How does MFS affect the AMT exemption?

Answer 20

TP gets 1/2

Question 21

How does it affect your return if you are MFS and lived with your spouse for ANY time during the year? (2)

Answer 21

1. Elderly and Disabled deduction - If you lived with your spouse ANY time during the year then you are not allowed the addition to standard deduction
2. More of your social security is taxable - up to 85% of social security benefits (same for railroad retirement benefits.

Question 22

What filing status can a TP choose if his spouse decides to file MFS?

Answer 22

1. MFS

2. HH - if he meets the requirements

Question 23

Can spouses that use different accounting methods file MFJ?

Answer 23

yes

Question 24

Can spouses that use different accounting periods file MFJ?

Answer 24

no

Question 25

Can same sexed couples joined by civil union or in domestic partnerships file MFJ or MFS?

Answer 25

No

Question 26

Is a couple considered married or unmarried if they have a legally decreed separate maintenance agreement on the last day of the tax year? What Filing Status couple each spouse use?

Answer 26

They are considered unmarried. They should use Single or HH (if they meet all other requirements)

Question 27

What form does and Injured Spouse file?

Answer 27

8379

Question 28

What is a TPs filing status if spouses are legally separated under a decree of separate maintenance and they have no dependents?

Answer 28

Single

NOT MFS